Process Outsourcing Accounting in SAP ERP Solutions For Apparel and Footwear

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Outsourcing acounting process:Collect relevant data and documents,Check and reconcile data,Outsourced pricing,Keep track of accounts payable against contracts, suppliers…

1.Collect relevant data and documents

  • Collect outsourced contracts from suplier factories
  • Collect data and goods receipt/issue note for outsourcing from factories
  • Collect invoices of forwarding fees of outsourced contracts from factories
  • Collect material costs of outsourced contract from inventory accountant and finished goods accountant.
  • Collect material costs from costing accountant

2.Check and reconcile data

outsourcing accounting in SAP ERP Solutions For Apparel and Footwear

3. Outsourced pricing:

  • Outsourced rough fabric costing:

o   Material and accessory consumption standards is regulated in contract % consumption standard is different for each contract. When contract is finalized, % consumption standard is measured based on actual cost. Then, actual outsourcing cost is calculated

o   Variance between outsourced budgeted cost and outsourced actual cost is only accountable (valued) for outsourced goods Purchasing cost in a period: based on budgeted cost

o   Outsourced for spinning: is a small routing in rough fabric manufacturing process, hence, outsourcing accountant only provides outsourced cost to cost accountant

  • Outsourced for embroidery/ wash sewing product: provide outsourced cost to cost accountant to calculate the expense
  • Outsourced for dyeing fabric:

o   If outsourced product is issued from store, outsourcing accountant would have value of outsourced products and provides outsourced price to warehouse unit.

o   If outsourced product is issued from factories: provide outsourced price to costing accountant

  • Outsourcing for sewing:

o   Material used: based on material and accessory consumption standards

o   Outsourced Price: based on contract

o   Outsourced price = (quantity of material used * unit price) + outsourced price

o   Unit cost of goods issued: based on average cost

4.Keep track of accounts payable against contracts, suppliers

Receive payment request which has been approved by managers of divisions

Keep track of cash payments, bank payments to deduct accounts payable

5.Keep track of forwarding expense post to accounts payable    

Receive payment request for forwarding fees which has been approved by managers of divisions Prepare reports

6.Prepare costing report

  • Provide and reconcile outsourced cost to inventory accountant and finished goods inventory accountant
  • Provide outsourced cost to costing accounting
  • Prepare outsourced payable balance report :Provide data to payable accountant
  • Prepare accounts payable for forwarding fee: Provide data to payable accountant
  • Provide data to general accountant

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